South Africa’s takeover panel has ordered Canal+ Group to make a mandatory offer for the shares in MultiChoice it doesn’t already own.
Earlier this month, Canal tabled a €2.5 billion bid for MultiChoice and its DStv and Supersport brands.
However, MultiChoice rejected the bid saying the 105 rand per share significantly undervalued the company.
In the next few months Canal will be split from its parent company Vivendi as part of a planned break-up of the French media giant. A listing for the combined Canal+/MultiChoice would also be sought in South Africa.
At the time of the bid Canal held a 31.67% stake in MultiChoice, which it has subsequently taken to 35.01%.
“The panel rules that Canal+ must take immediate action to comply with the requirements of.. the (Companies) Act and the regulations by making a mandatory offer to the remaining shareholders of MultiChoice,” the Takeover Regulations Panel (TRP) said in its ruling.
Previously, Canal has argued that a mandatory offer wasn’t necessary because of a clause in MultiChoice’s memorandum of incorporation that restricts foreign companies from holding more than 20% of its voting rights.
